Search results

On the night of August 5 a large German mutual fund "reallocated" out of bonds into equities. They bought an enormous amount of S&P futures through Morgan Stanley exactly when the trading was at its thinnest. August 5 was a horrible day in the markets. Horrible news in the economy, all the...

can someone explain to me: what is the big deal about a prop trading firm? Don't you just bring some money (20-50K), they give you 10-1 leverage and a desk and then you get to "work"? Please correct me if I'm wrong. What is the standard "deal"?

I've been searching for undervalued military-related stocks that havent run up as much as the already overvalued "standards" (LMT, RTN, etc.). Here's what I have so far. Any suggestions appreciated: DHB - makes bulletproof vests. P/E around 8. CEO just converted debt the company owed him to...

The question brought up two posts ago is that the consumer will not realize the benefits of a cut. This might be true. Mortgage rates come down slightly and the new bankruptcy laws ironically favor the hard-working consumer who pays his bills and wants to borrow money from banks that have...

The question is really: why wouldn't the Fed cut rates? In an ideal world, interest rates are 0, so the govt can borrow money and not have to pay any interest. So the natural tendency is to lower rates except for the following reasons: a. increases risk of inflation. However, last couple of...

whats another source for futures? I usually use either Globex or cnnfn and neither are working right now.

i think it will be a non-event also but I think people's expectations are different. I think money is sitting on the sidelines until that date passes. Big mutual funds are not taking any headline risk right now that one of their guys is going to not sign.

I was talking to a hedge fund guy today who is 100% short. His argument is that this month is the reverse mirror image of Dec 1999 so we still have about 3 months to go. I disagree with his comparison for the following reason. I think Dec. 99 is actually _similar_ to this month because of...

I never watch CNBC. There is absolutely zero information one can get from that channel. briefing.com is not bad.

In response to your post I would note that it was the mental suffering of Arjuna and the difficult political and family choices he had to make on the battlefield that prompted his charioteer, Krishna, to lecture him in what became the Bhavagad Gita. Questioning our choices with an open heart can...

>>Quit trying to explain it and follow the charts. The charts will work until they don't anymore. But since the market started it always eventually rewards growing companies that are being sold for cheap prices. Why would a growing company be selling for a cheap price? Because people are...

I short-term trade, but with a bias. Right now it looks like the best risk/reward scenario is to have a bullish bias ("buy when there is blood in the streets"). In January the most lucrative thing one could've done was short tech, the IPPs, and telecom. Cut losses and ride the winners. Right...

I was reading an essay by "Adam Smith" written in 1974. In the essay he is talking to a friend of his who is talking about how bad its about to get. The friend refers to "a major bank collapsing". It seems this story never really goes away.

- the FDIC stuff was interesting. I didn't know that the FDIC itself lacks money. - its true that unemployment was 28% a full four years after the crash of '29. However, Hoover also raised taxes a lot during that period, dampening both business and consumer spending. There was zero fiscal...

Hey, thanks for that link. Thats a cool looking chart. If you look at trailing 12 months you are absolutely right that the P/E of the S&P 500 is too high. Thats why the market has dropped for the past 6 months. A couple of points: a. over 80% of the S&P 500 have now reported earnings and...

note that earnings yield is different than dividend yield. THe earnings yield is just E/P * 100.

All good points. I'm not really arguing for the bull side. I'm just confused and playing the devil's advocate to the bear side. You say: >>PEs of many, many stocks are STILL at unreasonable levels. My response: The S&P 500 is going to make $50-55/share this year. All of the big guys have...

I'm capitulating. I can't take it anymore despite the mountain of evidence that one should be long this market. a. the average guy on the street is shorting. I'm not kidding: a cabdriver asked me what he should short. b. put/call ratios are higher than ever c. a ton of companies are...

I'm looking at NVDA as well. My buy price is probably $7. Couple of points: a. they guided up for this qtr in May. Coming in significantly lower puts the management in a very deep penalty box. b. NVDA just admitted that INTC and ATI are taking market share and margins are going down. This...

I'm going to commit blasphemy here but before trading any stocks I would read The Essays of Warren Buffett. Forget about how he picks stocks. The key to halfway decent investing is to have the right psychology to handle bad stretches. Buffett is really the master of this. Also, its important to...